Week 6 Journal: Economies of ScaleIn this week’s journal entry, you are asked to reflect on the concept of economies of scale. There are many ways to define economies of scale, but the most straightforward explanation is as follows: The more you make of something, the less it costs.Walmart is truly a behemoth in the retail industry; aside from Amazon, there are few competitors that have become such dominant forces in the marketplace.How does Walmart relate to the concept of economies of scale?Why is it a distinct competitive advantage to achieve economies of scale?What barriers to entry exist for companies attempting to enter the same industry as Wal-Mart?How might economies of scale pose a threat to existing smaller competitors? Look around your own community. Has Walmart had an impact on smaller businesses in your area?Here are a few sources that will help provide context as you are working through this journal entry.Free supermarket photosThe Big, the Bad, and the BeautifulSize comes in three flavors — scale, scope, and network.How Walmart Model Wins With "Everyday Low Prices"Wal-Mart: Every Day Low Prices Business Model

Economies of scale refer to the cost benefits enjoyed by the company when it becomes more efficient…

Answered: In this week’s journal entry, you are…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 11E

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Week 6 Journal: Economies of Scale

In this week’s journal entry, you are asked to reflect on the concept of economies of scale. There are many ways to define economies of scale, but the most straightforward explanation is as follows:

The more you make of something, the less it costs.

Walmart is truly a behemoth in the retail industry; aside from Amazon, there are few competitors that have become such dominant forces in the marketplace.

How does Walmart relate to the concept of economies of scale?
Why is it a distinct competitive advantage to achieve economies of scale?
What barriers to entry exist for companies attempting to enter the same industry as Wal-Mart?
How might economies of scale pose a threat to existing smaller competitors? Look around your own community. Has Walmart had an impact on smaller businesses in your area?

Here are a few sources that will help provide context as you are working through this journal entry.

Free supermarket photos

The Big, the Bad, and the Beautiful

Size comes in three flavors — scale, scope, and network.

How Walmart Model Wins With "Everyday Low Prices"

Wal-Mart: Every Day Low Prices Business Model

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